Jimmy McNelis, founder of Web3 tech company Nameless , said too many NFT projects hit the market without proper smart contract testing. This could potentially lead to millions of dollars that could be lost.
McNelis added that these NFT projects quickly hit the market without fully simulating how its smart contracts work, even bypassing extensive audits.
McNelis said an example of this was discovered during the sale of the Akutars NFT collection in February 2021 – there were 15,000 NFTs already sold on the winklevoss-owned marketplace, Nifty Gateway.
McNelis said while NFTs were sold out, a major bug caused a $33 million worth of Ether (ETH) from the sale to be locked in a smart contract that developers didn’t have access to.
“This can be thoroughly tested in a private testing environment and tested for sales. However, it is possible that the developer did not take the time to do it or thought to conduct it on a public test network. ”
McNelis stressed the importance of properly implementing the testing phase, as smart contract bugs cannot be patched after launch:
“The pilot phase of a project is extremely important because it will determine the success of your launch of technical solutions and marketplaces.”
McNelis explained that while projects can use a public test network to conduct testing for networks like Ethereum, many are unable to do this due to security concerns. He also said that some people don’t want to check in a public environment that lacks confidentiality.
“The other thing is that there are a lot of brands that want to explore the Web3 space but aren’t ready to publicly announce that they’re doing so.”
Nameless was founded by McNelis in mid-2021, and the project has so far received backing from many well-known entrepreneurs including NFT proponent Gary Vaynerchuck among others.
The company is preparing to launch a new product later this month with an NFT software called StealthTest, which provides private testnets for developers to try out smart contracts for Ethereum, IPFS, and Arweave.
Commenting on the NFT market, McNelis expects big-name companies to continue to enter the market with their own crypto products and to increase user interest in the retail market.
He noted that in terms of investment, it is still too early for large financial companies to speculate on NFTs themselves.
“I think organizations will still be mostly focused on producing things like that. But some brave people may speculate on some NFTs, but I don’t think NFTs and their markets are developed enough to make safe long-term investments,”